How to Form an LLC in Rhode Island

Introduction

The state of Rhode Island is an excellent place to form an LLC. The state has a low cost of living, with the average home costing just $215,000. It’s also one of the most densely populated states in America, with over 1,000 people per square mile. If you’re looking to form an LLC in Rhode Island, here are some steps you can take:

Choose a Name for Your RI LLC

To select a name for your Rhode Island LLC, you’ll need to follow some basic rules. You’ll want to choose a name that is not already taken by an existing business or corporation in the state of Rhode Island. You should also make sure that the name is easy to remember and does not mislead customers. It is best to keep things simple when choosing an LLC name so that it can be easily identified by people looking for businesses with similar names.

For example, if you were starting an accounting firm with two partners named John Smith and Jane Doe, it would be best to use “Smith & Doe LLC” as your company’s name because this makes it clear who owns the company without using too many words (or numbers).

File Articles of Organization with the Rhode Island Secretary of State

The next step is to file Articles of Organization with the Rhode Island Secretary of State. This must be done before you can start doing business, so it’s best to complete this task as soon as possible.

You’ll submit your application by mail or online at the Secretary of State’s website. The filing fee is $150 and non-refundable, but there are several payment options available:

Credit card (MasterCard, VISA)
Check (made payable to “Secretary of State”)
Money order (made payable to “Secretary of State”)

The confirmation letter from the Secretary of State will be sent back to the address you provide when submitting your application.

Appoint a Registered Agent for Your Rhode Island LLC

If you’re filing a single-member LLC, your registered agent will be you. If you have multiple members, however, it’s important to choose someone else. The person who acts as your registered agent is responsible for receiving official documents on behalf of the company and forwarding them to the correct person within 48 hours of receipt. A good registered agent will also offer other services, like handling payments and keeping track of account updates for your Rhode Island LLC.

The rules regarding what constitutes an acceptable Rhode Island Registered Agent are fairly straightforward:

The company must be a domestic entity that conducts business in RI
The individual or firm must agree to accept mail on behalf of the LLC (i.e., act as its “Agent”)
They must consent to be served with legal papers if necessary

Create an Operating Agreement for Your Rhode Island LLC

An operating agreement is a document that establishes the rights and responsibilities of each member of an LLC, including how much they’re contributing to the business and how strategic decisions are made.

The terms of your operating agreement will be based on what you want for your business, but it’s important that all members agree on them before you start your LLC. If you don’t have an operating agreement signed by everyone involved in the company, it may not be valid.

An operating agreement should include:

A list of every member (name, address, etc.)
The amount each member contributes to the company or expects to receive from it

Get an EIN for Your Rhode Island LLC

An Employer Identification Number (EIN) is a nine-digit number that the Internal Revenue Service uses to identify federal tax reporting entities. This can include corporations, partnerships, sole proprietorships and other business structures. EINs are required for all businesses that have employees and file taxes or need to open a bank account in the United States.

There are two ways you can get an EIN for your LLC: online or over the phone. If you’re comfortable doing it yourself, go ahead and fill out Form SS-4 yourself—it’s easy enough! Alternatively, if you’d prefer not to handle this task yourself but still want it done quickly and correctly, we recommend going through TurboTax Live so that our experts can help guide you through every step of the process.

Register as an Employer with the Rhode Island Division of Taxation – Employer’s Tax Division

Once you have formed your LLC, the next step is to register with the Rhode Island Division of Taxation – Employer’s Tax Division. This will ensure that your new business is properly registered and taxes are paid on time each year. You must also register with the RI Department of Labor and Training, who will be responsible for collecting unemployment insurance and workers’ compensation premiums from employers in Rhode Island.

As part of registering with these organizations, you will need an Employer Identification Number (EIN) for your new business. An EIN is a tax number issued by the IRS to distinguish between companies or individuals who want to do business under a specific name or trade name other than their own name as listed on their social security card or passport. In order to get an EIN online through the IRS website, click here; otherwise call 1-800-829-4933 to request one over the phone or mail in Form SS-4 along with proof of identity such as driver’s license/passport/birth certificate/social security card etc., which can be mailed here:

Register with the Department of Labor and Training Tax Division to Report New Hires

To hire a new employee, you must register that person with the Department of Labor and Training Tax Division. To do this, contact the following department:

Rhode Island Department of Labor and Training
Phone: (401) 222-2344 or 800-225-5702

Open a Business Bank Account for Your RI LLC

Once your LLC has been formed, you will need to open a business bank account. This is important because it allows you to deposit checks and withdraw cash on behalf of your company.

It’s important to choose a bank that has branches in the area where your business operates, as well as at least one branch close by the address of your RI LLC’s principal place of business. The more convenient banks are for you, the easier it will be for you to make deposits or withdrawals.

While each bank offers different services and rates, consider whether their fees are affordable and comparable with other banks’ fees before choosing them as partners.